What is an Overlap Analysis in The Vacation Rental Market?

With multiple online platforms available for hosts to list their homes as a vacation rental, many online travel agencies (OTAs) have the same listing on multiple sites. Such duplication can subsequently cause issues when utilizing data for accurate representations of the market. Including the same property or listing numerous times within a data analysis increases the likelihood of drawing incorrect conclusions about the state of the market.

However, these double listings can easily be filtered with an overlap analysis. An overlap analysis provides a precise overview of the short-term vacation rental market by excluding duplicates in the results.


What is an Overlap Analysis?

AllTheRooms Analytics utilizes a machine-learning algorithm, based on a multi-factor model including property descriptions, geocodes, and image-matching technology, to obtain an accurate picture of market share. Therefore, this tool is able to filter duplicate listings and withdraw only data that is accurate and valuable.


Below we have an example of online travel agencies with duplicate listings that show why an overlap analysis is important. In the first set of columns, you can see that 40% of Airbnb listings are also being posted on VRBO.  When analyzing the state of the market, it is critical to filter out duplicates to avoid an inaccurate description of the market.

Figure 1.0

To fully grasp market share and a real indication of the size of the short-term rental market in any given destination, the data acquired must be exact. AllTheRooms Analytics has the most complete and comprehensive market data as we have cataloged nearly every room on the planet. Our engineers and data analysts specialize in curated solutions and historical trends for any vacation rental region.


Overlap Analysis in Action

Let’s look at an example where we compare the overall active listings with the sorted and filtered listings for short-term rentals in Hawaii from 2015-2018. With the two sets of data, we can specifically compare the Home/Apartment property types focusing on houses that have 3-4 rooms, and determine how their overall price varies.


To start off we quickly identify that when an overlap analysis is run, the original amount of all active listings in Hawaii decreases from 52,154 down to 31,150 unique properties. As seen below, the unique properties made up an approximate 60% of the active listings — a strong indication that the 40% portion of the listing may have skewed potential results and analysis.

Figure 2.0

After filtering out both datasets with the required criteria, we can observe that the active listings including the House/Apartment property type with 3-4 bedrooms, decreases from 4,724 to 2,785, a 41% decrease.


In the two figures below, we see two line charts depicting both data sets activity within the past three years. A noticeable fluctuation in both charts is the dramatic increase in total listing price in October. Looking further into the data, we noted this change was due to a large number of listings being added to the inventory, with a significant portion being private homes walking distance of the ocean, thus having much higher prices. Our data also indicated that this huge influx of listings was primarily on VRBO, which was most likely related to the lawsuit Hawaii built against Airbnb for property owners not paying rental taxes.


Both charts show a similar trend, but the overall total price varies dramatically. Active listings reported over $2.7 million in total listing prices, while unique listings reported over $1.8 million, a $900,000 gap due to duplicate listings.

Figure 3.1

Figure 3.2

In this scenario, using data that hasn’t been filtered can cause risky decision-making and in the worst case, a loss in investment. Fortunately, AllTheRooms Analytics’ overlap analysis is able to provide a data set with an accurate set of information by removing duplicates.


For clients interested in expanding their knowledge and expertise of the short-term vacation rental market, contact us for a consultation and learn how Analytics can benefit your property.

What is an Overlap Analysis in The Vacation Rental Market?
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